Avoiding the Most Common Estate Planning Mistakes
Most people don’t make estate planning mistakes because they don’t care — they make them because no one ever explained how easy it is to get them wrong.
Here are some of the biggest missteps I see families and individuals make, and how to avoid them:
1. Not Naming (or Updating) Beneficiaries
Retirement accounts, life insurance policies, and investment accounts all pass by beneficiary designation, not your will. If beneficiaries are missing, deceased, or outdated, those assets can end up in probate or even the wrong hands. Check your beneficiary designations every 2–3 years or after major life events like marriage, divorce, or new children.
2. DIY Wills and Online Templates
It’s easy to think you’re saving money with a DIY will — until your family spends thousands fixing it later.
DIY online forms don't ask you questions for context that could change your plan entirely. You think you know what you need, but you could be wrong!
DIY forms could:
- Miss critical state-specific language
- Fail to properly name guardians or executors
- Not be properly witnessed or executed correctly under Connecticut law
- Fail to address your specific situation, family dynamic, etc.
- Have a mistake in wording or signing that invalidates the document
3. Outdated Documents
Even a well-drafted plan can fail if it’s too old. Banks and financial institutions often hesitate to honor powers of attorney older than 5 years, sometimes even less. If your will, POA, or healthcare directive hasn’t been reviewed in 5–7 years, it’s time for an update.
4. Unfunded Trusts
Creating a revocable living trust is step one — funding it is step two. That means retitling property and accounts into the trust’s name. An unfunded trust does nothing to avoid probate, and your assets may still need to be processed through the courts.
5. Failing to Coordinate with Your Financial Plan
Even the best legal documents can fail if they’re not aligned with your investment and insurance accounts. Estate planning and wealth management are two sides of the same coin — your documents, beneficiaries, account titling, and trusts should all work together.
The Bottom Line
Estate planning isn’t just a one-time project. It’s a living, evolving part of your financial life. When done right, it protects your family, reduces stress, and ensures your legacy is handled exactly the way you want — without unnecessary court involvement or conflict.
If it’s been a few years since you last reviewed your documents, it may be time for a check-up. A few small updates today can prevent major headaches later.